The cryptocurrency ecosystem can be extraordinarily dense at first for newcomers. It might seem like everyone’s speaking a different version of English you’ve never seen before.
Cryptocurrency world is full of slang and memes that can be both bewildering and off-putting to outsiders. Learning the ropes into the complex world of cryptocurrencies can be a daunting challenge for many, as the crypto market is filled with technical, computing, trading, and finance jargon.
One of the first things that crypto newbies will need to do is to become “literate.” We’ll walk you through the most important and prevalent cryptocurrency terms you’ll need to understand as you’ll dive deep.
WHALE. These are those who own more than 5% of any cryptocurrency. They might be well-established investors or just incredibly rich. One thing is certain; whales have enormous influence in the cryptocurrency market. Whales will be mentioned especially often when cryptocurrency prices drop significantly before an explanation for the decline can be determined. They are mostly accused of market manipulation as well.
HODL. This is a by-word for not panicking. It is simply a misspelling of ‘Hold’ which expresses the zeitgeist of crypto investors nowadays. The term originated on the Bitcointalk forum in the thread titled “I AM HODLING,” in which a user named “GameKyuubi” who made the spelling mistake when expressing his thoughts (after drinking whiskey) about his mindset when it came to Bitcoin trading. The phrase has also been described as meaning “Hold on for Dear Life.” Hodling, therefore, is suggested as the superior portfolio strategy for novices and amateurs. The idea is to sit back and not to lose your stack from botched trades. If cryptocurrencies continue to explode in value in the decades ahead, it will have been worth it just to sit on your portfolio as if it were a treasure trove.
BAGHOLDER. Bagholders are often people who purchase a currency at an all-time high or during a bull run, they become the bagholders once the price lowers leaving them stuck in a position where if they were to sell, they would make a loss. When the going gets so tough that the value of your investment is plummeting, one must know when to let go.
FUD. This is an acronym for Fear, Uncertainty, and Doubt, though some refer to it as “Fear, Uncertainty, and Despair.” It’s a phrase that describes the heightened sense of panic and anxiety that can spread through the ecosystem like wildfires. Though noobs (newbies) might be scared into selling their positions, seasoned investors are often keen to use FUD-induced price drops as buying opportunity. You have to be critical and even-keeled in the face of FUD. You will have to do your own research to know if a threat is imagined or real.
REKT. This is a phrase from the gaming world that means when a cryptocurrency plummets in value and wipes out investors.
TO THE MOON. It means that the cryptocurrency is going all the way up — to the moon, metamorphically speaking. It’s the investors’ rallying cry as a way to celebrate.
BEARWHALE. He is a trader who acts like a bear — that is, he believes prices will fall — and also happens to be a whale. A BearWhale’s sell-off can temporarily flatten the whole market. It took the combined efforts of hodlers and whales to get things back on track and ‘slay’ the BearWhale.
VAPORWHALE. It is the fancy name for coins that you really don’t want in your wallet. These coins are surrounded by hype and artificially inflated in value.
SHILL. In the cryptocurrency world, a shill promotes a coin for his own gain — not out of the kindness of his heart.
BTD. This is short for “Buy the Dip”. It is an indication to buy a coin when it has substantially decreased in price.
THIS IS GENTLEMEN. This is an error in writing, “This is it, gentlemen.” It is now used as an introduction to good news.
LAMBO. It is defined as a short form of “Lamborghini,” the exotic Italian sports car that many cryptocurrency investors symbolically promise to purchase in the event that they become rich from their crypto investments.
WEAK HANDS. It is defined as investors whose confidence is threatened by emotional distress to the point of selling some or all of their cryptocurrency portfolio. They are often identified as people who sell as soon as the value of an investment drops in price.
ADDY. This is a short term for “address.” Address is the string of letters and numbers that is publicly available and allows cryptocurrency to be received.
BEAR TRAP/BULL TRAP. A literal trap where a general upward price trend reverses downwards momentarily and will continue its upwards motion/ A literal trap where a general decreasing price movement reverses upwards momentarily and will continue its downwards motion.
DEAD CAT BOUNCE. This is a temporary recovery in prices after a huge decrease caused by speculators buying in order to cover their positions.
DUMP/DUMPING. It means selling away your coins/Downward price movements due to increase selling pressure by many.
FOMO. It means “Fear of Missing Out.” This is a rookie mistake where a coin is skyrocketing and you get the feeling that it’s going to pump more so you buy at the peak.
PUMP & DUMP. This is a price manipulation by whales or collectives.
SHITCOIN. A coin with no potential value or use. This also includes useless currencies such as fiat money.
MCAP. This means Market Capitalization of the coin, which is an indicator of its market size. It is derived from multiplying its market price to the total available supply of coins currently in the market.
Being immersed in this digital world can be intimidating especially for noobs. To familiarize yourself with the above terminologies can be your big edge over someone who has little to no knowledge about the cryptocurrency arena.